How do you get a balanced investment property?
Are you preparing your property investment strategy? It's a great way to build wealth for the long run, especially when you buy new real estate in Queensland. However, there are a lot of variables to take on board, in particular with how your property actually makes you money.
There are two particular methods by which people accrue money in their real estate – capital gains and positive cashflow. In many areas, you're only likely to get one or the other. For example, the CoreLogic RP Data rental report for May showed that in Sydney, rental yields were on the way down, while value was up.
But by buying in Brisbane or certain areas of Queensland you might be able to have your cake and eat it – here's how!
Best of both worlds
According to that CoreLogic RP Data report, people are better off buying in Brisbane or Adelaide if they want a balanced investment property. This means you can generate both capital gains and positive cashflow at the same time!
While the value growth in your Queensland real estate isn't likely to better that of Sydney, remember that slow and steady wins the race. Brisbane's rental yields currently sit at 4.6 per cent, offering some crucial stability.
This is great news when you want a property that generates money for you every week, as well as slowly growing in value.
So how do you find positive cashflow?
This is the trickier part. Knowing where growth areas are, and understanding the market in depth is going to be key to securing a property that helps you on both fronts. However, with the help of professionals like the wealth coaching team at Think Money, we can help you understand the market and how to make the most of it.
This includes striking while the iron is hot. According to SQM Research, the asking rents for houses dropped in the week ending June 12, while the same figure for units went up a little. But in the long term, they're both steadily rising, indicating some good cashflow for you down the line.
Knowing these figures and understanding where the good transport links are, where developments like schools are going up, what the jobless rate is and more will help you buy an investment property that produces funds both short term and long term.
Don't hesitate to get in touch for more advice on creating an excellent investment strategy.